Q:Are we paying too much, we estimated to pay about £3.500-4000 (inc. moving costs) on top of the purchase price for expenses, now it is turning to be close to 6k ..
it is a leasehold flat in London for 250K, this is the current breakdown:
local solicitor fees (we need local): 600 + VAT
leasehold, charges on property etc. – 300 + VAT
searches, land registry, bank transfer – 400
stamp duty – 2500
mortgage arrangement fee – 1000
homebuy survey (we need this one) – 650
that makes about £5700 in total already, without any moving costs … am I missing anything, any hints how to reduce any of these expenses, all solicitors in our area seem to charge similar fees .. or it is my initial estimate that was wrong ?
I got quotes from many of them, all the same +/- ￡50 … anyway I think it is too late to change solicitor at this stage … what about survey, can I choose to use my own (should be about ￡200 cheaper) ?
Local authority srch ￡145.00- disbursement, ie. all money goes to a third party if your lender accepts no search insurance this could reduce to ￡65.25
Bank transfer ￡42.30 – solicitor fee (36 + vat) this is NOT a disbursement even though a lot of solicitors try to pass it off as one.
Bankruptcy search ￡10.00 – disbursement, not sure here, ￡2 per name is the cost I'm familiar with, solcitor is not allowed to add on extra
So your solicitors fees are really ￡936 (+VAT)
My maths could be off, I've just driven 300 miles.
Online you could get this for ￡529.99 (+VAT)
Perhaps if local is the only way (though I'm not sure how someone can insist you use or restrict yourself to certain solicitors) you need to shop around the rest of your high street solicitors!!
Apologies if my maths is off.
The solicitor doesn't have to be local, but it is important he understands flats – not some factory operation who will ask lots of silly questions without really understanding what is going on.
But it still seems a little high. Can you post your full quote, broken down, here? Separate out the mortgage fee and stamp duty as they're not to do with your solicitor.
guy
got that number in mind after reading some forums and property websites …
Legal fees ￡600.00
Charge on property ￡100.00
Leasehold ￡150.00
Stamp duty form ￡50.00
VAT ￡158
Land registry srch ￡220.00
Local authority srch ￡145.00
Bank transfer ￡42.30
Bankruptcy search ￡10.00
—————
solicitor ~1500
stamp duty 2500
mortgage 1000
survey 650
I noticed your survey was more advanced (3rd level, mine is 2nd) but cheaper. My survey is provided by the mortgage lender (Halifax), can I use my own surveyor instead, what complications to expect .. will it be accepted by bank, can delay the process ?
2) Stamp Duty on ￡250K is ￡7500, am I right in thinking your property is just under that?
3)Mortgage arrangement fee… Have you shopped around? There are mortgages with much lower fees.
1) Our offer was accepted on that condition, the vendor wants the sale to go smoothly and quickly
2) Stamp Duty on ￡250K is ￡2500, add ￡1 and it will become ￡7500
3) Yes, I did, there were mortgages with lower fees but we would pay much more by the end of promotional period due to higher %, so did the maths and decided to go for this one
This is what I paid 18 months ago:
PURCHASE
Solicitor's fees inc VAT 734.38
Survey of new place (structural) 540.50
Local search 155.00
Contaminated Land Search 35.00
Land Registry search 6.00
Landlord's registration 16.00
Land registry 150.00
Stamp Duty 1845.00
Bank transfer 29.38
Leasehold Transfer 80.00
Total: £3591
Solicitor fees may well be similar where you are, but there other charges may well be different. Have you gotten a few quotes??
Take off the difference in the stamp duty and your mortgage arrangement costs, and your equivalent to mine is £4050…a good £500 above. I used an expensive solicitor and got the full structural survey, too.
I think you were too conservative in your estimates…did you do estimates based on having gotten some quotes, or did you guess?? Any first time buyer should budget for £5K minimum inc moving costs, stamp duty and mortgage fee…and your quotes should have shown you that, so you were a little naive in your estimate!
But it still seems a little high. Can you post your full quote, broken down, here? Separate out the mortgage fee and stamp duty as they're not to do with your solicitor.
guy
This sounds quite expensive to me. Could I be cheeky and ask you to PM me the quote please?
Why does it have to be local?
stamp duty – 2500
mortgage arrangement fee – 1000
homebuy survey (we need this one) – 650
Stamp Duty on ￡250K is ￡7500, am I right in thinking your property is just under that?
Mortgage arrangement fee… Have you shopped around? There are mortgages with much lower fees.